In the current session, Lincoln National Inc. (NYSE:LNC) is trading at $35.75, after a 0.73% decrease. Over the past month, the stock decreased by 13.31%, and in the past year, by 5.22%. With performance like this, long-term shareholders are more likely to start looking into the company's price-to-earnings ratio. Lincoln National P/E Ratio Analysis in Relation to Industry PeersThe P/E ratio measures the current share price to the company's EPS. It is used by long-term investors to analyze the company's curr ...

Market Conditions and Financial Impact - The company experienced increased outflow rates in its Annuities business during 2024 and 2025, primarily due to elevated interest rates leading to full surrenders [184]. - A decline in market interest rates could materially adversely affect the company's results of operations, financial condition, and cash flows, significantly reducing profitability [180]. - The company anticipates that changes in equity markets may significantly affect its business and profitability, with strong equity markets leading to higher account balances and fee income [185]. - Increases in interest rates may negatively affect the company's profitability, capital position, and the value of its investment portfolio [181]. - The company's statutory reserves and surplus for variable annuities are sensitive to equity market changes, with non-linear relationships affecting reserve calculations [235]. - Income from certain investments can be uneven and volatile, impacting earnings and leading to lower-than-expected returns [282]. - Default risk on mortgage loans, primarily collateralized by commercial properties, may adversely affect profitability [283]. - Exposure to various industries and counterparties increases credit risk, particularly in the event of defaults [284]. - Collateral requirements related to declines in market value of specified assets may adversely affect liquidity [285]. - Disruptions in capital and credit markets may limit access to necessary capital, affecting liquidity and financial flexibility [222]. Regulatory and Compliance Challenges - Legislative and regulatory changes, such as the NAIC's temporary guidance approved in August 2023, have increased the company's statutory capital and estimated RBC ratio as of December 31, 2025 [193]. - The company is monitoring potential impacts from new regulations, including the implementation of a new GOES for calculating annuity and life reserves effective January 1, 2026 [193]. - Compliance with existing and emerging privacy laws could result in increased compliance costs and changes in business practices, potentially adversely affecting the company's reputation and financial condition [195]. - The company faces challenges related to the use of AI and big data, which could lead to increased compliance costs and changes in business practices [203]. - Increased scrutiny regarding ESG matters may impact the company's reputation and business operations, with new regulations requiring climate-related disclosures starting in 2026 [205]. - Regulatory actions could lead to substantial fines or restrictions on business activities, adversely affecting financial condition and results of operations [208]. - Changes in laws or regulations may impose additional disclosure requirements and affect the distribution model and sales of products, potentially increasing costs [209]. - Compliance with new fiduciary standards may increase regulatory burdens and litigation risks, adversely impacting financial results [210]. - Changes in tax laws could increase corporate taxes, negatively affecting results of operations and financial condition [212]. - Legal and regulatory actions could result in financial losses and harm the company's reputation, impacting business prospects [214]. Operational Risks and Challenges - The company faces potential adverse effects on its business and financial condition due to deficiencies in AI systems, including risks of cybersecurity incidents that may involve personal information [204]. - Cybersecurity threats have increased, with a proliferation of ransomware attacks and other cyber incidents, although the company has not experienced a material breach to date [259]. - The reliance on third-party vendors for critical services increases operational risks, including cybersecurity threats and supply-chain dependencies [265]. - The company’s flexible hybrid work model may increase operational risks, particularly in cybersecurity [258]. - The company may encounter significant costs related to litigation for intellectual property protection, which could impact its competitive position [255]. - The company faces intense competition for qualified employees, which may adversely affect its ability to support business operations [254]. - The company may face operational difficulties and unforeseen liabilities from acquisitions, which could adversely affect financial results [269]. Financial Strength and Ratings - A downgrade in the financial strength ratings of the company's insurance subsidiaries could negatively impact its ability to market products and lead to increased withdrawals by current customers [274]. - The company may not be able to maintain its current financial strength ratings, which could affect its cost of capital and ability to raise additional debt [275]. - An inability to access credit facilities could lead to reduced liquidity and potential downgrades in credit and financial strength ratings [231]. - The company ceded $1.2 trillion of life insurance in force to reinsurers for reinsurance protection as of December 31, 2025 [251]. - In November 2023, S&P implemented changes to its insurer RBC capital adequacy model, affecting the statutory capital required to maintain current ratings [229]. - A decrease in the capital and surplus of the insurance subsidiaries may lead to a downgrade in credit and insurer financial strength ratings [226]. - The company recorded a goodwill impairment of $634 million related to its Life Insurance segment during the third quarter of 2022 [239]. Risk Management Strategies - The company uses various hedging strategies to mitigate risks associated with guarantees on its variable products, but these strategies may not fully offset changes in carrying value [188]. - The company may need to strengthen recorded policy liabilities during periods of sustained lower interest rates, which could reduce net income in affected reporting periods [180]. - Significant adverse mortality experience could increase reinsurance costs or limit future coverage availability, impacting profitability [244]. - The company faces risks related to the collectability of reinsurance, which is dependent on the solvency of individual reinsurers [252]. - Future pandemics or catastrophic events could materially adversely affect the company's results of operations and financial condition [245]. - Restrictions on dividends from insurance subsidiaries could harm the company's ability to meet obligations and corporate expenses [223].

Lincoln National Corporation's Board of Directors Declares Quarterly Cash DividendFeb 19, 2026 4:30 PM Eastern Standard Time# Lincoln National Corporation's Board of Directors Declares Quarterly Cash DividendShare---RADNOR, Pa.--([BUSINESS WIRE])--Lincoln Financial (NYSE:LNC) announced today that the board of directors of Lincoln National Corporation declared a quarterly cash dividend of $0.45 per share on the corporation's common stock. The dividend on the common stock will be payable May 1, 2026 to shareh ...

Core Insights - Lincoln National Corporation (LNC) reported fourth-quarter 2025 adjusted earnings per share of $2.21, exceeding the Zacks Consensus Estimate by 18.7% and reflecting a year-over-year increase of 15.7% [1][9] - Adjusted operating revenues rose 5.7% year over year to $4.9 billion, surpassing the consensus mark by 1% [1][9] Financial Performance - The increase in quarterly results was driven by higher insurance premiums, strong annuity deposits, and solid Life Insurance performance, alongside higher net investment income and improved mortality results [2] - Insurance premiums increased by 5.4% year over year to $1.7 billion, beating the Zacks Consensus Estimate by 1% [3] - Net investment income grew 11% year over year to $1.6 billion, exceeding the consensus mark by 6.7% [3] - Total expenses rose 35.2% year over year to $4 billion, while net income was reported at $754 million, down from $1.7 billion in the prior-year quarter [4] Segment Performance - The Annuities segment's operating income was $311 million, up 2.6% year over year, with operating revenues increasing by 7% to $1.3 billion [6] - The Life Insurance unit recorded an operating income of $77 million, improving from a loss of $15 million in the prior year, with operating revenues growing 2.2% to $1.6 billion [7] - The Group Protection segment's operating income increased 1.9% year over year to $109 million, with operating revenues totaling $1.5 billion, an 8.3% year-over-year improvement [8] - The Retirement Plan Services segment reported an operating income of $46 million, rising 7% year over year, with operating revenues increasing 4.5% to $352 million [10] Financial Position - As of December 31, 2025, Lincoln National had cash and invested cash of $9.5 billion, up from $5.8 billion at the end of 2024, and total assets of $417.2 billion, an increase from $390.8 billion [12] - Long-term debt remained stable at $5.9 billion, while total stockholders' equity rose to $10.9 billion from $8.3 billion at the end of 2024 [12] - Book value per share, excluding accumulated other comprehensive income, was $73.10, up from $72.06 at the end of 2024 [13] Full-Year Update - For the full year 2025, Lincoln National reported adjusted earnings per share of $8.23, a 16.4% increase year over year, with adjusted operating revenues improving 4.1% to $19.1 billion [15] - The operating revenues in the Annuities, Life Insurance, Group Protection, and Retirement Plan Services segments saw year-over-year improvements of 1.9%, 3.1%, 6.7%, and 2.4%, respectively [15] 2026 Outlook - In 2026, the Annuities, Life Insurance, Group Protection, and Retirement Plan Services units are projected to account for 58-60%, 8-9%, 24-25%, and 8-9% of the company's total operating income earnings, respectively [16] - Management aims to maintain an RBC ratio of over 420% in both 2026 and the long term [16]

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Financial Data and Key Metrics Changes - Adjusted operating income increased by 31% year-over-year in Q4 2025, marking the highest level in four years [5][25] - Full-year adjusted income from operations available to common shareholders was over $1.5 billion, a 23% improvement compared to 2024 [25] - Net income available to common stockholders for Q4 was $745 million, or $3.80 per diluted share [26] Business Line Data and Key Metrics Changes - Annuities sales volumes increased by 25% in 2025, with RILA sales up 35% and fixed annuity sales up 11% [11][12] - Group Protection delivered operating earnings of $493 million for the full year, up 16% from 2024, with a margin improvement to 9% [28] - Life Insurance operating earnings improved to $77 million for Q4, compared to an operating loss of $15 million in the prior year [36] Market Data and Key Metrics Changes - Group Protection now accounts for approximately 25% of business unit earnings, up from 18% in 2023 [45] - Spread-based annuity account balances increased to 30%, up from 25% in 2023 [46] - Average account balances in Retirement Plan Services increased nearly 9% year-over-year to $124 billion [35] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise through strategic realignment and operational execution [7][10] - There is an emphasis on products with higher risk-adjusted margins and stable cash flows to strengthen business resilience [9][14] - The company aims to maintain expense discipline while investing strategically to support long-term priorities [8][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite potential market volatility [10][22] - The company is committed to improving the quality and durability of earnings while focusing on profitable growth [21][36] - The outlook for 2026 includes expectations for continued earnings growth and capital return to shareholders [49] Other Important Information - The investment portfolio delivered an annualized return of nearly 12% for Q4, exceeding targets [24][42] - The company completed the consolidation of several Life Insurance captive entities, which is expected to improve free cash flow [43][69] - Holding company liquidity ended the year at approximately $1.1 billion, providing financial flexibility for future capital returns [44] Q&A Session Summary Question: Capital return guidance and buybacks - Management indicated that capital deployment priorities include maintaining excess capital in operating entities and preparing for optimal handling of preferred securities [52][54] Question: Excess cash and potential uses - The excess cash at the holding company is primarily aimed at managing preferred securities and increasing capital return to shareholders [56] Question: Life Insurance captive consolidation impact - The consolidation of captives is expected to reduce reserve financing costs and improve the free cash flow profile of the legacy Life block [68][69]

Financial Data and Key Metrics Changes - Adjusted Operating Income increased by 31% year-over-year in Q4 2025, marking the highest level in four years [5] - Full-year Adjusted Operating Income available to common stockholders was over $1.5 billion, a 23% improvement compared to 2024 [25] - Net income available to common stockholders for Q4 was $745 million, or $3.80 per diluted share [26] Business Line Data and Key Metrics Changes - Annuities delivered operating income of $311 million for Q4, with total sales volumes up 25% year-over-year [11][30] - Group Protection's full-year operating earnings increased by 16% to $493 million, with a margin improvement to 9% [28] - Life insurance delivered operating earnings of $77 million for Q4, a significant improvement from an operating loss of $15 million in the prior year [36] Market Data and Key Metrics Changes - RILA sales increased by 35% in 2025, reflecting strong customer demand [12] - Fixed Annuity sales increased by 11%, while Variable Annuity sales rose by 27% year-over-year [12] - Group Protection's full-year premium growth was nearly 7%, driven by strong sales and persistency [19] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise [7] - Strategic realignment efforts are aimed at optimizing the operating model and enhancing capital efficiency [9] - The company is prioritizing profitable growth over top-line sales growth, particularly in annuities [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite potential market volatility [10] - The company expects to sustain momentum in earnings growth and improve the quality of earnings over time [22] - Management highlighted the importance of maintaining expense discipline and optimizing the investment strategy [41][42] Other Important Information - The investment portfolio delivered an annualized return of nearly 12% for Q4, exceeding targets [24] - The company completed the consolidation of several life insurance captive entities, which is expected to improve free cash flow [43][69] - Holding company liquidity ended the year at approximately $1.1 billion, providing financial flexibility for future capital returns [44] Q&A Session Summary Question: Capital return expectations for 2026 - Management indicated that capital deployment priorities include maintaining excess capital in operating entities and preparing for preferred stock redemption [52][54] Question: Future remittances and shareholder returns - Management confirmed that remittances are expected to grow, and there is potential for increased capital return to shareholders in the future [60][61] Question: Impact of captive consolidation on earnings - Management noted that the captive consolidation completed in Q4 provided a $10 million benefit to life earnings and is part of broader efforts to improve free cash flow [69]

Financial Data and Key Metrics Changes - Adjusted Operating Income increased by 31% year-over-year for Q4 2025, marking the highest level in four years, with full-year Adjusted Operating Income exceeding $1.5 billion, a 23% improvement compared to 2024 [5][25][26] - Net income available to common stockholders for Q4 was $745 million, or $3.80 per diluted share, driven by favorable market conditions [26] - The company reported a strong alternative investments portfolio return of nearly 12% for the quarter [25][42] Business Line Data and Key Metrics Changes - Annuities delivered operating income of $311 million for Q4, with total sales volumes up 25% year-over-year, driven by a shift towards spread-based products [10][31] - Group Protection achieved operating earnings of $493 million for the full year, up 16% from 2024, with a margin improvement to 9% [28][30] - Life insurance operating earnings improved significantly to $77 million for Q4, compared to an operating loss of $15 million in the prior year [36][38] Market Data and Key Metrics Changes - RILA sales increased by 35% in 2025, while Fixed Annuity sales rose by 11%, reflecting strong market demand [11][12] - Group Protection's full-year premium growth was nearly 7%, with strong sales across all products and segments [19][30] - Retirement Plan Services reported average account balances increasing nearly 9% year-over-year to $124 billion, despite net outflows of approximately $1 billion for the quarter [35][36] Company Strategy and Development Direction - The company is focused on improving risk-adjusted returns on capital, reducing volatility, and growing its franchise through strategic realignment and operational enhancements [6][7] - There is an emphasis on products with higher risk-adjusted margins and stable cash flows to strengthen business resilience [8][9] - The company aims to maintain disciplined expense management while investing strategically to support long-term priorities [7][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value, despite potential market volatility and economic changes [9][23] - The company is committed to enhancing capital efficiency and optimizing its operating model to support sustainable growth [22][48] - Looking ahead to 2026, management expects continued earnings growth and a focus on profitable growth over top-line sales growth [12][16] Other Important Information - The company completed the consolidation of several life insurance captive entities, which is expected to improve GAAP earnings by approximately $25 million to $30 million in 2026 [71] - Holding company liquidity ended the year at approximately $1.1 billion, providing financial flexibility for future capital returns to shareholders [44][49] Q&A Session Summary Question: Capital return expectations for 2026 - Management indicated that capital deployment priorities include maintaining excess capital in operating entities and preparing for optimal handling of preferred securities [52][54] Question: Excess cash management at the holding company - Management confirmed that excess cash would primarily be used for managing preferred securities and increasing capital return to shareholders [56][57] Question: Life insurance business improvements - Management discussed the benefits of captive consolidation and ongoing efforts to enhance the free cash flow profile of the legacy life block, projecting further improvements in earnings [70][71]

分组1 - Lincoln National reported quarterly earnings of $2.21 per share, exceeding the Zacks Consensus Estimate of $1.86 per share, and showing an increase from $1.91 per share a year ago, resulting in an earnings surprise of +18.71% [1] - The company achieved revenues of $4.89 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.96%, and up from $4.63 billion year-over-year [2] - Over the last four quarters, Lincoln National has consistently surpassed consensus EPS estimates, achieving this four times [2] 分组2 - The stock has underperformed the market, losing about 11.7% since the beginning of the year, while the S&P 500 has gained 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $1.72 on revenues of $4.94 billion, and for the current fiscal year, it is $8.01 on revenues of $19.86 billion [7] - The Zacks Industry Rank for Insurance - Life Insurance is in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Earnings Supplement Fourth Quarter 2025 February 12, 2026 1 Forward-Looking Statements – Cautionary Language Certain statements made in this presentation and in other written or oral statements made by Lincoln or on Lincoln's behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or ...